ASX oil majors dip as crude prices steady
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The news: Oil majors dipped on the ASX as oil prices steadied, after signs of another inventory draw in the US were offset by concerns about Chinese demand and uncertainty over interest rate cuts in the US.
The numbers: Global benchmark Brent crude was down 20 US cents (29.8 cents), or 0.24%, to USD84.46 by 2:15pm AEST, after falling by more than 3% over the last three sessions. West Texas Intermediate was down 12 US cents, or 0.16%, by USD81.28.
Crude stockpiles shrank by 1.92 million barrels last week, after total holdings reduced more than 12 million barrels a week earlier, Bloomberg reported.
In the local market, oil and gas majors Woodside Energy (-0.2%), Santos (-0.2%), Beach Energy (0.8%), and Ampol (-9%) all edged lower, while Karoon Energy added 0.8%. The wider energy sector was down 0.55% as the ASX200 dropped 0.28%.
The context: Despite a reduction in US stockpiles, the world's largest oil importer China showed signs of softening demand.
Data on Wednesday underlined the country's economic challenges, with deflationary pressures persisting as factory-gate prices fell. It followed earlier signs of lessening demand for crude from some of China's refiners.
However, oil has gained overall this year, supported by OPEC+ supply cuts and expectations for looser US monetary policy.
The source: Bloomberg
